company, or can research them online.TIP: Make sure you recognize the name of the insurance^
Just because they have “Insurance Company” at the end of their name,does not mean they are well rated. You can check on them using a service (^)
such as AM Best or Moody’s. A high rating from either is essential; if it’s notin the A- to A+ range, don’t bother—there are better options out there.
Insurance products in this field typically run a 10 percent profit. That is, 90percent of what they take in is eventually paid out as claims. That 10
percent, plus interest, is why they’re in the game. A legitimate parts andservices contract will have an administrator as well, who handles billing, (^)
claims, and other activities. But your contract isn’t with them; insurance company. If the administrator goes under, you’re still okay—the it is with the (^)
insurance company will find or set up another. And there are laws to helpyou press any legitimate grievances you might have.
WHO SELLS SERVICE CONTRACTS
The biggest seller of service contracts are dealers. 40 percent of new carsalone are sold with one, all certified (CPO) used cars have them included,
and many used cars go down the road with them. This can be a bit